Mr. George Lam, aged 48 has been working for an international shipping company for the last 8 years with current income $80,000 per month. His wife, Anna, aged 48 too is a full time housewife. They have a son, Billy, aged 14. Mr. Lams parents are financially independent and live in Canada with Georges sister. George would like Billy to study in Canada after Billy completes the secondary school at age of 18. George also gives financial support $5,000 each month, to Annas parents, aged 72 and 70 respectively. Since they do not know much about financial planning and investment in their previous years, so far they just put their money in form of saving in the bank. Currently, they have about RMB300,000 and HKD600,000 fixed term deposit respectively. They learned from their friends that it may be good to invest in index fund, like the Exchange Traded Fund (ETF) so George would like to take advantage of investing in one of them. Currently, the total monthly living expense for the Lams family is $25,000, while the mortgage is about $20,000 per month for 12 years more. As for retirement, George would like to retire at age 60 and maintain about 60% of the current living standard. George and Ann would like to maintain an emergency fund for about HKD$200,000 on the day they retire. Regarding medical protection, only George has joined the medical scheme that provided by Georges employer. Other than that, the family has no other insurance protection.

As a financial planner, you are required to:

1. prepare a financial plan for Lams family including but not limited to education fund for Billy, retirement plan for George and Anna and insurance requirement for the family.

2. analyze an Exchange Traded Fund, other than the Tracker Fund of Hong Kong (Stock Code: 2800) and Hang Seng China Enterprises Index ETF (2828), then Page 2 or 2 compare your suggestion with the Tracker Fund of Hong Kong, and provide an investment advice accordingly.

3. highlight any other hidden concerns you think of and the way to cover them.

Assumptions:

a. Estimated average annual rate of inflation for the whole period: 3% p.a

b. YOU SHOULD MAKE ANY REASONABLE ASSUMPTIONS BY YOUR OWN TO FACILITATE THE CALCULATION.